Economic rebalancing in China is a long-term issue
Chinese shoppers buy vegetables at a supermarket in Jiujiang city. Annual inflation spiked unexpectedly in March to 3.6 per cent, driven by rising food prices, surprising investors who had bet on cooling price pressures to give Beijing room to ease monetary policy. (Photo: AAP)

Author: Wang Xiaolu, NERI

Economic imbalance in China — as indicated by the country’s very high investment rate, large export surplus and low proportion of domestic consumption — represents a long-term structural problem.

According to official statistics, the ratio of final consumption to GDP dropped sharply from 62.3 per cent to 47.4 per cent over the past decade. Read more…

The route of urbanisation in China
A view of the skyline in Shanghai, China. High property prices may hinder the process of urbanisation and cut Chinese competitiveness, said Li Daokui, a member of the monetary policy committee of China's central bank. Additionally, skyrocketing home prices are keeping talented young people from settling in major cities, thus hindering the process of urbanisation. (Photo: AAP)

Author: Wang Xiaolu, CRF, Beijing

China’s urban development strategy has triggered ongoing debate as to whether its government should focus on small- and medium-sized cities and towns or whether China should allow and encourage more large-sized cities.

This is a highly controversial issue in China and raises the more general issue of whether, and to what extent, the Chinese government should intervene in the process of urbanisation. Read more…